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The interest rate effect of a decrease in the aggregate price level will increase which of the following? A. the purchasing power of money holdings B. investment spending C. interest rates D. aggregate supply E. aggregate demand

Sagot :

Consumers can raise more money with reduced interest rates as a result of lower interest rates. Spending on investments rises together with their financial resources.

What do mean by demand?

Demand is the consumer's commitment to purchasing a particular good or service. Market demand is the term used to describe the demand for a given good on the market. Aggregate demand is the term used to describe all of the economy's demand for goods and services. The cost of a commodity or service depends on how well supply and demand are matched. acknowledging the notion of demand. Demand in economics refers to a consumer's willingness and desire to purchase products and services at a specific price. When a good or service's price increases, demand often decreases.

Why is demand important?

The relationship between supply and demand is essential because it influences how much most goods and services cost and are available in a given market. The principles of a market economy dictate that supply and demand eventually achieve balance.

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